Mexico is building on established connections with the UAE to create endless opportunities

Mexico has long sought to diversify its relations worldwide, and the Middle East has been of crucial importance

By Paulo Carreño King

Sun 25 Feb 2018 03:36 PM

The Global Business Forum (GBF) on Latin America is another step forward in a regional relationship that goes beyond the geographical distances that separate us. It now recognises the vast amount of possibilities ahead of it.

For Mexico, it has also represented an invaluable chance to strengthen its ties with the Middle East, a region we value and with which we see tremendous potential. Within this context, the GBF Latin America 2018’s theme “Connect, Collaborate, Grow” poses three central elements that allow us to analyse where we have been, where we stand, and – most of all – where we are heading.

Connections

Mexico has long sought to diversify its relations worldwide, and the Middle East has been of crucial importance. Our ties have evolved to the point where Mexico has positioned itself as Dubai’s second-largest non-oil trade partner in Latin America according to the Dubai Chamber of Commerce, while, on the other side of the spectrum, data from the Mexican Ministry of Economics says that the UAE has become the biggest investor in Mexico from the Arab World. Moreover, since 2006, our trade with the UAE has multiplied fourfold, both in imports and exports.

Our network of bilateral agreements on trade and investment with member nations of the Arab League, together with our tight links with various Chambers of Commerce, has provided us not only with reasons but with the necessary tools to engage in wider connections with the region.

Collaborate

Today, we are more linked than we have ever been. Enrique Peña Nieto’s recent trip – the first state visit to the region by a Mexican chief executive in four decades – coupled with several agreements and memorandums of understanding on trade, culture, education and energy that Mexico holds with several Arab nations, confirm our country’s strong commitment to establish a solid basis for Mexico-Middle East joint work.

Our collaboration scheme has expanded to the extent to which it has become common to witness bilateral business agendas in different sectors, as well as periodic visits from Mexican companies to the region. Additionally, ProMéxico has a constant presence in different events and trade shows held in Arab countries and ensures we have permanent and fluid communication with authorities at all levels to foster new projects on trade and investment.

Grow

Mexico expects to exponentially boost its relationship with the Arab countries. In order to do so, our nation is making sure of providing the region’s stakeholders with its attractive set of strengths that underline why Mexico is such an interesting investment target.

In fact, Mexico is among the world’s top 15 most reliable investment destinations, with its appeal highlighted by several international organisms such as UNCTAD and PwC. President Enrique Peña Nieto’s structural reforms have been a critical part of our strategy, which has, among other things, opened up FDI opportunities in sectors such as energy. With this framework, we foresee a growing and promising future for Arab business involvement in our nation.

The perspectives for pushing forward Mexico-Middle East ties range from infrastructure and tourism to capital funds and even pipeline products. The ground has been already settled to advance our common goals and make the most of the significant chances we have ahead of us. The possibilities of our relationship are endless.

In Mexico, we are convinced that in the present and in the future, the Arabian Peninsula is a place where we can connect, collaborate and grow.

Paulo Carreño King, CEO of ProMéxico, the government agency responsible for strengthening Mexico’s participation in the global economy.